The Week: Doing it right on the wrong side of town, CVRD gets a good result for wrong reasons

Mar 8, 2021 | Commentary, CVEDS, News

By George Le Masurier

As voters and taxpayers, we hope our elected officials always do the right thing for the right reasons.

The Comox Valley Regional District did the right thing last week by terminating its contract with the Comox Valley Economic Development Society (CVEDS). But they did it for the wrong reasons.

The Economic Development Society was a poorly run service that clothed itself in secrecy, reported to no one but a few self-appointed friends and spent a lot of money for questionable community benefit. And in doing so, the society managed to disappoint, frustrate and antagonize broad sectors of the Comox Valley community.

That was the right reason to terminate this contract.

Hornby and Denman islands and the Village of Cumberland pulled their financial support for the CVEDS service many years ago because those taxpaying elected officials realized how little value they were getting for their money.

Regional directors from Courtenay and Areas A and B might have gotten there, too, but they were making a good faith effort to transform CVEDS into a modern and more relevant organization through — for the first time ever — serious oversight.

But the CVEDS contract was not terminated for its obvious lack of performance. It wasn’t terminated because it had lost its way many years ago by spending almost a third of its budget on a seafood festival that added nothing to the economic sustainability of local businesses beyond a slight uptick in restaurant reservations.

The society’s contract wasn’t terminated because it often claimed responsibility for things on which it actually had minimal impact. It wasn’t terminated because the society shunned accountability or that it failed to comply with requirements under the Societies Act. Or that it had trouble managing its money.

No, the regional district terminated the CVEDS contract because Comox council members objected to increased oversight and scrutiny. Comox councillors didn’t like the regional board setting goals for the society that targeted current problems, such as affordable housing for low-wage employees and familys’ access to child care.

Comox Councillor Ken Grant summed it up when he lectured Courtenay Councillor Wendy Morin about how elected officials should manage arms-length societies.

“That’s the thing about the independent governance model, you don’t get to tell them how to do their business. That’s been the problem from day one,” Grant said at the Feb. 9 regional board meeting.

Grant couldn’t have been more wrong.

When a local government creates an organization — as the regional district did by forming CVEDS in 1988 — that exists only because it receives more than $1 million in public funds annually, then the elected officials absolutely get to say what they want for their money. In fact, taxpayers expect their elected officials to set the big picture goals and to hold people accountable for achieving them.

Grant was right about one thing. The independent governance model has been the problem from day one. Day one being back in 1988. Since then the society has happily taken the public’s $1 million-plus every year and did whatever it wanted with the money. Past elected officials didn’t seem to care what they did.

What is truly amazing is that this bad example of political oversight took so long to blow up.


But don’t celebrate just yet

Just because the contract for economic development services gets voided later this year doesn’t mean Comox Valley taxpayers are off the hook.

The regional district wrote CVEDS a $400,000 check in January. That’s one-half of its 2021 funding. The expectation is that the society will continue to fulfil the majority of their 2021 work plan items, including the ones the Town of Comox finds so distasteful.

But, of course, the regional district has no means of ensuring that all or even most of the work will get done satisfactorily. What recourse does the CVRD have? The contract will terminate on Aug. 26 whether the work gets done or not.

The second half of the $800,000 CVEDS 2021 budget is scheduled for July. Will they automatically get another $400,000 for their last two months? Not necessarily, according to CVRD Chief Administration Officer Russell Dyson.

“CVEDS has various commitments in place to deliver services for economic development, tourism and visitors services, and destination marketing. The termination notice provides service to CVEDS for eight of the 12 months in 2021, therefore the second payment for 2021 will consider any adjustments to annual allocation for this adjustment, noting that some costs are annual whether the contract is terminated part way through the year,” he told Decafnation via email.

Dyson confirmed that the regional district would not be responsible for any severance pay for CVEDS employees because they are not CVRD employees.

But Comox Valley taxpayers might become responsible for the Visitors Centre, which some people call the “drum” building and others call the White Elephant.

According to Dyson, “Upon the wind up of CVEDS, the net assets after payment of liabilities is transferred to CVRD and the participant member municipalities. The ongoing ownership and operation of the Visitors Centre will be a key consideration of the service participants in determining future service priorities.”

Dyson says the CVRD and municipal partners will be meeting and working with CVEDS staff the next few months to “encourage” that the work plan priorities are delivered and to encourage a smooth transition to a future service delivery determined through the service review.

“The second payment amount will be determined through this collaborative work over the next few months,” he said.


So what will rise from the ashes of CVEDS?

How will local governments provide destination marketing, handle visitor services, manage the hotel tax money and encourage economic vibrancy?

Given that Cumberland and the islands are doing just fine managing their own economic prosperity in-house — as most other communities on Vancouver Island already do — the ideal scenario now is that Courtenay and Comox will hire their own economic development officers.

The CVRD should also hire an economic officer to focus on the three electoral areas because it’s too easy for the rural areas’ needs to be overshadowed by the municipalities. They may all feel strongly about food security, but there are different projects that need to take place in different areas.

Then all four of the Valley’s economic development officers can meet monthly to share information and work together where it’s possible.

Meanwhile, all local governments should agree to share the contract for destination marketing and visitor services to Tourism Vancouver Island (about $260,000 per year). The City of Courtenay economic development officer should have input to Tourism Vancouver Island about how local MRDT funds are spent because all of that money comes from the city.


Every community’s needs will evolve over time

But no matter how our elected officials propose to meet those needs, they must always favour transparency and accountability and ensure their objectives are being met without favouritism and for the benefit of the greatest number of people.



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